Oil Slides Below $60 A Barrel

oilderrick tbi

Reuters – Oil fell below $60 a barrel on Tuesday, pressured partly by a firmer U.S. dollar and expectations an OPEC meeting later this week would keep the producer group’s output unchanged.

U.S. oil prices for July delivery fell $1.91 from Friday’s close to $59.76 a barrel by 1000 GMT. London Brent crude was down $1.31 at $58.90. Oil has nearly doubled in price since December, buoyed partly by expectations of higher prices if the world economy recovers. U.S. crude has reached its highest in six months.

“Clearly, more fund money is now banking on higher oil prices down the road,” Edward Meir of broker MF Global said in a research note.

But he said the supply/demand outlook for oil was less promising in the near term.

“Particularly in the light of the likely OPEC decision to leave quotas unchanged. This leaves unaddressed the continuing build up in oil inventories, which could come back to haunt the cartel.”

OPEC’s most influential member Saudi Arabia said the group was likely to leave its output targets unchanged.

Morning Links:

What exactly is renewable energy? Does this sound right: “”A banana is renewable — you can grow them forever…A banana that goes into garbage and gets burned,” he added, is “a renewable resource and producing renewable energy.” [NYT]

Volkswagen and BYD are looking at a collaboration for electrics. [WSJ]

More cleantech IPO talk, again focused on smart grid super company Silver Spring. [Greentech Media]

Part II of an interview with First Solar President Bruce Sohn. [PV Tech]

Obama stimulus sparks $2.4 billion battery gold rush. [WSJ]

World panics over oil spike. [FT]

Sorry WaPo, the new climate bill doesn’t create dozens of new government agencies. [Grist]

China said to be investing $100 billion building smart grid technology. [Bloomberg]

Climate Change summit hijacked by polluters. [Guardian]

 

NOW WATCH: Briefing videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.